USD/MXN Down 113 Pips in Last 4 Hours, Entered Today Up For the 4th Day In A Row; Pin Bar Pattern Appearing on Chart

USD/MXN 4 Hour Price Update

Updated June 18, 2020 09:06 AM GMT (05:06 AM EST)

USD/MXN is down 113 pips (0.05%) since the last 4 hour candle (opening the current 4 hour candle near 22.2827), marking the 2nd candle in a row a decrease has occurred. Out of the 37 instruments in the Forex asset class, USD/MXN ended up ranking 26th for the four-hour candle in terms of price change.

USD/MXN End of Day Recap

Updated 00:30 GMT (04:30 EST)

USD/MXN is up 560 pips (0.25%) since the day prior (opening today near 22.36879), marking the 4th day in a row an increase has occurred. Out of the 40 instruments in the Forex asset class, USD/MXN ended up ranking 2nd for the day in terms of price change. Let’s take a look at price chart of USD/MXN.

USD/MXN Technical Analysis

The first thing we should note is that USD/MXN is now close to its 20 and 100 day averages, located at 22.0472 and 22.8692 respectively, and thus may be at a key juncture along those timeframes. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 20 day average, which is 3216.1 pips away. It should be noted, though, the 20 day simple moving average turned upwards, which may be a bullish sign. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving up. Interestingly, a trend in the other direction exists on the 30 day timeframe, where price is headed down. For additional context, note that price has gone down 19 out of the past 30 days. And for candlestick traders, a special treat: there is a pin bar pattern showing up on the charts as well. Rejoice!

The View From Around the Web

Of note is that traders in aggregate have opinions on USDMXN, with 6 buy signals on our radar and 4 sell signals. This imputes a buy/sell ratio of 1.5, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

on DAILY: USDMXN is retesting a strong demand zone in green so we will be looking for objective buy setups on lower timeframes….on H1: USDMXN formed an objective channel in red so we are waiting for a momentum candle close above the last swing that forms around our upper red trendline to buy….meanwhile, until the buy is activated, we would be overall bearish